الهيئة العامة للرقابة المالية

Dr. Islam Azzam:

• Arbitration is vital for attracting investment and reducing litigation costs.
• Egypt has great potential to advance its arbitration system through legislative updates and global expertise.

Dr. Islam Azzam, FRA Chairman emphasized the vital importance of arbitration in attracting investment. He stressed the necessity of developing arbitration process in Egypt to resolve disputes in a manner that alleviates judicial burdens and reduces litigation costs.

He added that global economic shifts have heightened the significance of consensual dispute resolution through arbitration and mediation. He noted that international trends reflect a growing corporate preference for arbitration over traditional litigation. Recent international studies indicate that approximately 90% of companies prefer arbitration as a primary means of dispute resolution, while 60% prefer combining arbitration with other alternative mechanisms, reflecting a growing trust in these processes.

These remarks were delivered during the keynote address at “Egypt Arbitration Day (EGYAD),” an event hosted by the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS) led by Dr. Marian Kaldas. The event gathered a distinguished group of experts, regulators, and judicial figures to strengthen arbitration’s position as a pillar of a healthy investment environment.

Dr. Islam Azzam underscored that arbitration is a pivotal driver of the investment climate, citing research that indicates a 22% improvement in the business environment compared to traditional litigation in developing countries. This positive impact is fueled by several distinct advantages, primarily the swift resolution of disputes and the reduction of investment downtime. By offering parties the flexibility to define their own rules and potentially slashing long-term costs by 80%, arbitration serves as a powerful catalyst for attracting foreign direct investment and fostering sustainable economic growth.

Additionally, Dr. Islam Azzam noted that Egypt holds promising opportunities to develop its arbitration ecosystem, especially as the Financial Regulatory Authority (FRA) moves to expand the use of Financial Technology (FinTech) within non-banking financial activities. This shift aligns with national economic priorities under Law No. 5 of 2022. He emphasized the importance of intensifying awareness and education regarding international best practices, while enhancing coordination between legislative and regulatory bodies, financial institutions, and the legal community to establish arbitration as a primary choice for resolving investment disputes.

In this context, FRA Chairman highlighted the recent Prime Ministerial Decree amending the Statutes of the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS). The amendments officially adopted e-arbitration rules, enabling secure and confidential remote proceedings. Furthermore, the decree introduced an “Expedited Arbitration” system designed to fast-track dispute resolution, specifically for cases with a financial value not exceeding EGP 25 million.

Reaffirming FRA’s long-term vision, Dr. Azzam stated that the Authority remains dedicated to evolve the legislative framework for non-banking activities. By refining dispute mechanisms, FRA aims to foster market trust, ensure financial stability, and deepen financial inclusion – all of which serve to make the Egyptian economy more competitive globally.

“Egypt Arbitration Day (EGYAD),” is organized by the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS). It is worth mentioning that (ECAS) was established by Presidential Decree No. 335 of 2019, pursuant to Article 10 of Law No. 10 of 2009 concerning the Regulation of Non-Banking Financial Markets and Instruments. This initiative is part of ongoing efforts to exchange expertise and review international best practices aimed at protecting market participants and accelerating consensual dispute resolution. Ultimately, these efforts seek to advance the arbitration ecosystem, transforming it into a fundamental pillar for supporting investment environment and attracting capital.